Springfield councilors back staff plan to lower insurance requirement for smaller encroachment permits to $1 million

Jeff Pascall, DPW Community Development Division Director, briefed the Springfield City Council on potential changes to professional liability insurance required for privately funded public improvement projects (PIPs) and smaller type 2 encroachment permits.

The memo in the council packet summarized the city's current approach, noting that Springfield has required $2,000,000 in professional liability coverage for design professionals on PIPs since about 2021 as a consistent standard tied to the Oregon Tort Claims Act. Pascall said the requirement was adopted after case-by-case exceptions and litigation in earlier years and that the city has since removed a separate general commercial liability requirement for design professionals.

The discussion focused on complaints from small engineering firms and solo practitioners that premiums can be high relative to fees on smaller projects. "The premiums for these insurance policies can be significant when compared to the fees that the engineers might earn on smaller projects," Pascall…